SINGAPORE - Premiums in the top-up portion of the Integrated Shield Plan for ward classes B1 and A in public hospitals will not increase for a year after MediShield Life is implemented, the Life Insurance Association (LIA) said on Wednesday.
LIA president Dr Khoo Kah Siang said the five Integrated Shield Plan (IP) insurers are committed to not increasing the top-up portion of premiums for plans covering those two classes.
"This will allow for a smooth transition as all renewals of these IPs during the one-year period will see no increase in the premiums for the top-up portion," he said.
Insurers will re-examine the plans thereafter to ensure that top-up benefits remain relevant in meeting the needs of Singapore residents, he added.
Currently, the top-up premium for Class B1 plans are up for review as part of discussions with the Government to develop key features for a standardised IP focused on Class B1 coverage, said Dr Khoo.
For plans covering private hospitals, IP insurers will take into account the effect of MediShield Life benefit enhancements as well as other factors including past claims experience, projected future medical inflation rate and claims usage, he said.
Dr Khoo added that the commitment to not raise top-up portion of premiums is "based on the assumption that there is no significant change to the regulatory and competitive environment".